Allianz economist Adrian: AI investment boom is a "rational bubble" that will help the United States outperform global markets.

Mohamed El-Erian, chief economic advisor of Allianz Group, stated that the US economy is currently experiencing a prosperity driven by artificial intelligence, and this trend is helping the US outperform global markets. In an interview, El-Erian emphasized that the current investment frenzy in the field of artificial intelligence is a "rational bubble" that is expected to significantly boost productivity in the economy. There is no doubt that we are in an economy driven by artificial intelligence, and for good reason - the potential of artificial intelligence to boost productivity is immense, El-Erian said. He pointed out that without artificial intelligence, the US economy "would not be performing as well" and "would not be able to outperform other regions globally;" however, he also believes that despite the fact that only a "few winners" may emerge among the many competing artificial intelligence companies, this technological investment race is ultimately beneficial. El-Erian also discussed the simultaneous rise in gold prices, attributing this trend to international concerns about the US dollar rather than weakness in the US domestic economy. While other regions of the world trust the US private sector, they are worried about the US dollar, he said, noting that foreign investors are increasingly hedging their positions in the US market and central banks and institutional investors are diversifying their assets into gold. On the topic of private credit, the economist acknowledged some pressures in the market but denied any serious stability concerns. Whether you liken it to cockroaches or ants, both analogies work. We have seen some pressures, and we will see more in the future. But they are not termites, he emphasized, stating that current financial pressures "will not erode the foundation of financial stability." El-Erian expressed a positive outlook for the overall financial system, believing that despite isolated cases of excessive risk-taking, the private credit market still plays a positive role - providing financing options for businesses that may otherwise struggle to obtain funding. He extended this optimistic viewpoint to developing economies, pointing out that the expansion of credit access in these markets is "a very good thing."